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Employee Loyalty: Earned not Bought

Recruiters World Special Reports

Despite corporate scandals, widespread outsourcing, and the demise of pensions, employee loyalty appears to be holding strong. According to a recent poll by Career Journal and the Society of Human Resource Management (SHRM), "77% of HR professionals and 71% of employees rate their loyalty to their current organization as extremely or moderately loyal." A key element in employee satisfaction, promoting employee loyalty is at the foundation of corporate retention. In this article, we look at ways employers can establish a trusting, loyal environment for their employees. We also discuss strategies to help you recruit "loyal" employees from the outset.

According to a recruiter with a Big 4 consulting firm, "employers must earn their employees' loyalty." Loyalty is not just about free Pepsi and popcorn, or even flexible scheduling. Loyalty stems from growing and nurturing a long-standing, trusting relationship between employer and employee. What's at the foundation of this relationship? Good communication, strong ethics, and fair and consistent corporate policies. Like any interpersonal relationship, employees are more likely to be loyal to individuals and entities that have also displayed fairness and loyalty to them.

Need proof? Just look at Southwest Airlines –- a company renowned for its loyal workforce and high retention rates. Herb Kelleher, the company's CEO, has long emphasized putting employees first. In contrast to many business leaders, Kelleher has long maintained that the needs of employees should take precedence over those of customers and even shareholders. In a recent graduation speech Kelleher delivered at The University of Texas at Austin, Kelleher stated that effective managers are those that take a genuine interest in their employees and their output. "An organization bound by love is more powerful than one bound by fear," according to Kelleher.

Loyalty also pays in the recruitment process –- both for companies and for recruiters. Take a qualified candidate looking at four job offers. All things being equal, which job will that candidate select? He or she will likely choose the company with the best feedback from current and past employees. Same goes for recruiters. Top candidates often have a choice of which search firm to work with. Whether a candidate chooses to work with you or not could easily come down to your professional reputation. Given the choice, candidates will use and stay loyal to recruiters who not only work hard, but also work well with others.

Turning the focus to the interview process, how can a recruiter tell if a candidate is likely to become a loyal employee? According to a recruiter with a Big 4 consulting firm, the solution is simple. "Just listen carefully to how the candidate describes his or her experiences with former employers." Before the candidate decided to leave his or her last job, how did they handle the situation? Did the candidate make a concerted effort to solve his or her issues with the company before resigning, or did the candidate just up and quit? A candidate who actively tried to make a past situation work is also likely to be loyal and try and stick it out with his or her next employer.

A final point about loyalty: you need to continually work to maintain it. Though today's polls indicate that employees are highly loyal to their employers, this sentiment could change fast. With the economy improving, and more opportunities opening up, the temptation to transition to new opportunities could become strong. What safety nets do you have in place to prevent workers from straying? Keeping the lines of communication open and promoting a culture of mutual respect and loyalty could be the glue that reduces turnover and helps keeps your workforce in place.

 

    About RW Special Reports
 

Recruiters World Special Reports is a timely, in-depth news series that explores vital issues and trends affecting the human-capital industry. Published monthly, Recruiters World Special Reports is presented and distributed exclusively through Recruiters World in Review. Visit the Special Reports archive to read previous articles. Watch for new articles as they appear on the Recruiters World home page.

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